Business and Personal Finance Dictionary

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• FRACTIONAL SHARE
  
  If you reinvest your dividends or invest a fixed dollar amount-for example, $100 a quarter-in a stock dividend reinvestment plan (DRIP) or mutual fund, the amount may not be enough to buy a full share, or there may be money left over after buying one or more full shares. The excess amount buys a fractional share, a unit that is less than one whole share. In a DRIP, a fractional share gives you credit toward the purchase of a full share. With a mutual fund, in contrast, the fractional share is included in your account value.
  
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